CMS has advised ING Bank N.V., as coordinator of a group of banks, on a EUR 416 million loan to DTEK, the largest privately-owned, vertically-integrated energy company in Ukraine. ING coordinated a syndicate of banks including Sberbank of Russia, Gazprombank, UniCredit Bank Austria AG and Sberbank (Switzerland) AG.
The facility has two tranches with a tenor of 3 and 5 years and will be used for general corporate purposes, including, but not limited to the financing of DTEK’s capital expenditure. The size and combination of international and Russian liquidity made this one of the most significant transactions in Ukraine this year.
CMS lead partner Mark Segall commented: “Not only did the syndicate comprise a rare combination of leading European and Russian banks, but the transaction is also an outstanding example of the value CMS can add when advising on a financing to leading domestic companies that make their entry into the international syndicated loan market. A deep understanding of the requirements of borrower and lender in achieving their aims was key to a successful conclusion of the transaction.”
The transaction is the second one in Ukraine on which CMS has advised a syndicate including both UniCredit and ING within the last 12 months. Earlier in the year the firm advised PJSC Ukrsotsbank, the Ukrainian branch of UniCredit, and ING on a US $100 million corporate and acquisition financing to Ukrainian agribusiness Kernel Holding, which is listed on the Warsaw Stock Exchange.
The team that advised the banks consisted of partner Mark Segall and associates Marie Olsarova and Vojtech Laga in Prague, as well as partner Adam Mycyk and associate Kateryna Chechulina from CMS in Kyiv and partner Eduard Scheenstra from CMS in Amsterdam. On off-shore issues CMS was supported by Harneys. The borrower was represented by Freshfields Bruckhaus Deringer.
